Nissan and Renault have announced plans to outline a joint purchasing strategy for automotive components. The alliance plan will share more parts and suppliers and double the volume of each auto part used over the next five years.
By March 2009, the companies plan to define the new component strategy and outline joint-engineering specifications. The strategy is seen as an attempt to cut costs and benefit from volume purchasing.
The two automakers believe a successful joint venture will require closer cooperation between the engineering teams to simplify and commonise component designs. The companies have also decided to identify and prioritise suppliers who can serve the alliance.
RNPO (Renault-Nissan Purchasing Organization) expect suppliers to have a better balance of business between Renault and Nissan.